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Ten Questions Newbie Ask............ |
amitsaraf21
White Belt
Joined: 20 Feb 2009
Posts: 76
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Post: #1  Posted: Sun May 20, 2012 4:38 pm Post subject: Ten Questions Newbie Ask............ |
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1. What is the best indicator for intraday.
2. What is better swing trading or Intraday.
3. What is better index futures or individual stock futures.
4. What is better options or futures.
5. What is the best time frame to trade.
6. What is the best system for range bound/sideways markets.
7. How much money do i need to start trading.
8. Which is the best broker:?:
9. What is your view on this x or y or z
and
10. I made x points, how many points did u make.
There are so many more questions that a newbie would ask, and for me i don't have any answer to any of them.
There cannot be a right answer to a wrong question.  |
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ProTrader
Site Admin
Joined: 06 Jul 2008
Posts: 433
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| Post: #2 Posted: Sun May 20, 2012 10:55 pm Post subject: |
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9 and 10 are by not so new traders too 
I and ST debate this many times. Why not 100% of the members who join iCharts continue to remain with us. I see it from this perspective, most of the folks have an impression that by using an indicator or chart they can start making money (and I am sure they are just not new to trading, they have traded either through tips or on advice from friends or heard a conversation at a pan shop). So when they join iCharts, it is a natural expectation that they have found a forum where they can mint. This is where we need to help them out by guiding them to learn, spend time and understand charts. Patience! Patience! Patience!
Our analysis has shown that 70% to 80 % will leave it after few months due to alien terminologies like SL and dissatisfaction due to unable to mint (our assumptions is 1-2% go to competitors). 20% to 30% will get the message and atleast start reducing their losses. 10% will make profits. The idea behind iCharts is to convert those 20-30% traders in making profits. We hope and wish that those 70 to 80% people stay for a bit longer and atleast start reducing their losses.
ST aur maine Gita pe haath rak ke ye kasam khayi hain, Jab tak hain dum, we will keep on repeating the message and strive to help the traders community, because once upon a time were were also "New bees". 
Regards,
ProTrader |
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hasten
White Belt
Joined: 30 Jun 2011
Posts: 216
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| Post: #3 Posted: Sun May 20, 2012 11:55 pm Post subject: Re: Ten Questions Newbie Ask............ |
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| amitsaraf21 wrote: | 1. What is the best indicator for intraday.
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Whatever Indicator One Chooses To Work With, One Has To Get Comfortable With It Over A Period, In the process the indicator will reveal A lot more once you decide & work with it Over A Time.(For me All indicators are great.. only provided you know in which market conditions to apply them and when to ignore them . and all indicators give bad results when applied in wrong market conditions.).
I'll take all questions one by one later............
Regards, hasten
You know my method. It is founded upon the observation of trifles. It is, of course, a trifle, but there is nothing so important as trifles. |
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smartcancerian
Yellow Belt
Joined: 07 Apr 2010
Posts: 542
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| Post: #4 Posted: Mon May 21, 2012 6:45 am Post subject: |
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ST aur maine Gita pe haath rak ke ye kasam khayi hain, Jab tak hain dum, we will keep on repeating the message and strive to help the traders community, because once upon a time were were also "New bees".
Saas bhi kabhi bahu thi...  |
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vinay28
Black Belt
Joined: 24 Dec 2010
Posts: 11748
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| Post: #5 Posted: Mon May 21, 2012 8:57 am Post subject: |
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| well said PT. Based on my own experience, I believe you guys at Icharts have left nothing unturned as far marketing the forum is concerned and, yet, have kept it as a "friendly next door neighbour". Good luck as always! |
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hasten
White Belt
Joined: 30 Jun 2011
Posts: 216
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| Post: #6 Posted: Mon May 21, 2012 9:17 am Post subject: Re: Ten Questions Newbie Ask............ |
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| amitsaraf21 wrote: |
2. What is better swing trading or Intraday.
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Day traders buy and sell stocks throughout the day in the hope that the price of the stocks will fluctuate in value during the day, allowing them to earn quick profits. A day trader will hold a stock anywhere from a few seconds to a few hours, but will always sell all of those stocks before the close of each day. The day trader will therefore not own any positions at the close of any day, and there is no overnight risk.
Swing traders will normally have a slightly longer time horizon than day traders for holding a position in a stock.Swing trading is a style in which one trades intermediate trend in the market . This trend normally lasts from 3 days to 3 weeks......Swing trading requires keeping overnight positions and these are subject to gap ups/downs, adverse movements in world markets, bad news affecting the world markets etc. Bur the rewards are also good if one remains in the trend till the trend shows reversal and then reverse and take a ride in the opposite direction.
Difference:- Principal Difference Between Day Trading & Swing Trading is that swing traders will normally have a slightly longer time frame than day traders for holding a position in a stock Or Its futures. Swing traders also attempt to predict short term fluctuation in stocks price. However, swing traders are willing to hold stocks for more than a day, If necessary,
Note :- Swing trading has the capability of providing higher returns than day trading. However, Unlike day traders who square off their positions on the same day before the market closes.There are some significant risks in carrying positions overnight. For example news events and earnings warnings announced after the closing bell can result in large, unexpected and possibly adverse changes to a stock's price. Similarly good news can give significant rise the next day.
Regards, hasten
There are three things I always forget. Names, faces and... the third I can't remember.
Last edited by hasten on Mon May 21, 2012 1:43 pm; edited 1 time in total |
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ajayhkaul
Yellow Belt
Joined: 18 Jun 2009
Posts: 866
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| Post: #7 Posted: Mon May 21, 2012 10:06 am Post subject: |
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If this message is understood - sooner the better, ofcourse - then the newbie is likely to cut to the chase :
In trading, there is one simple thing you must do to be a winner.
You must be on the right side of the market. In other words, you must position yourself so that the odds of the market going in your direction are better than the odds of the market moving against you.
So let your 'indicator(s)' assist to indicate if the odds are in your favor.
Don't try to pick 'winning stocks'( this is where tips come in , also emotionally one gets attached to the potential winner , and the need to be right...all lead to disappointment) |
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Padkondu
White Belt
Joined: 23 Jan 2008
Posts: 120
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| Post: #8 Posted: Mon May 21, 2012 11:47 am Post subject: Re: Ten Questions Newbie Ask............ |
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| amitsaraf21 wrote: | 1. What is the best indicator for intraday.
2. What is better swing trading or Intraday.
3. What is better index futures or individual stock futures.
4. What is better options or futures.
5. What is the best time frame to trade.
6. What is the best system for range bound/sideways markets.
7. How much money do i need to start trading.
8. Which is the best broker:?:
9. What is your view on this x or y or z
and
10. I made x points, how many points did u make.
There are so many more questions that a newbie would ask, and for me i don't have any answer to any of them.
There cannot be a right answer to a wrong question. |
A newbie will always have questions and by the time he knows if it is a right question or wrong question he is no more a newbie. i do not know about others but at least half of the questions are very familiar to me. unfortunately, the answers are not easy. one has to know through ones own experience. how ever I would like to answer the question no 5.
this was my biggest problem when i was as a beginner few years back. it took me more than one year to understand the importance of time frame and the importance of sticking to a particular time frame.
choosing the time frame is as important as choosing a strategy. It depends on personality, strategy in application, profit objective. etc.
the best intra day time frames are 15min, 10min, 5min and 2 min if one is using a single timeframe strategy/method.
the 2 min timeframe is for scalper, which i never did.
if one is using multiple timframe strategy (15min and 5 min) or (30min and 10min) combinations are in usage. (i was good with 15min,5 min combination, of course, with a birds eye view on daily charts and important levels)
for swing trading - daily,60min,30min and 15min are used. for multiple time frame strategies daily/60min, 60min/20min, 30min/10min are used.
i personally feel that daily/60min and 30min/10min timeframes are very good. i used 60min/20min time frame for quite some time and i always get a buy signal just below resistance and sell signal just above a support. one needs to have larger stops for using this strategy. the other two are reasonably good.
how ever one has to try out the time frames that are suitable to their personality, profit objectives.
higher the time-frame, less whipsaws. this is the general word of the market. i also say better the exit strategy, better the success ratio. the big problem traders face is that, the stock will hit the stop and move in the direction of trade. this calls for adjusting the stop.
all these are gained better by experience, but keep trading quantity low till gain experience.
i swing trade using 60min/20min timeframe, with due respects to daily and weekly charts.
regards
Padkondu |
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amitsaraf21
White Belt
Joined: 20 Feb 2009
Posts: 76
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| Post: #9 Posted: Mon May 21, 2012 11:57 am Post subject: Absolutely! |
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yes Q 9 and 10 are also applicable to other traders as well.
you guys are doing an excellent job of helping new traders.
All the very best.
| ProTrader wrote: | 9 and 10 are by not so new traders too
I and ST debate this many times. Why not 100% of the members who join iCharts continue to remain with us. I see it from this perspective, most of the folks have an impression that by using an indicator or chart they can start making money (and I am sure they are just not new to trading, they have traded either through tips or on advice from friends or heard a conversation at a pan shop). So when they join iCharts, it is a natural expectation that they have found a forum where they can mint. This is where we need to help them out by guiding them to learn, spend time and understand charts. Patience! Patience! Patience!
Our analysis has shown that 70% to 80 % will leave it after few months due to alien terminologies like SL and dissatisfaction due to unable to mint (our assumptions is 1-2% go to competitors). 20% to 30% will get the message and atleast start reducing their losses. 10% will make profits. The idea behind iCharts is to convert those 20-30% traders in making profits. We hope and wish that those 70 to 80% people stay for a bit longer and atleast start reducing their losses.
ST aur maine Gita pe haath rak ke ye kasam khayi hain, Jab tak hain dum, we will keep on repeating the message and strive to help the traders community, because once upon a time were were also "New bees".
Regards,
ProTrader |
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amitsaraf21
White Belt
Joined: 20 Feb 2009
Posts: 76
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| Post: #10 Posted: Mon May 21, 2012 12:11 pm Post subject: well said |
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Yes!
Well said MR Ajay
being on the right side of the market more often than not
or making it big when u are on the right side of the market
and keeping risk in control all the while.
| ajayhkaul wrote: | If this message is understood - sooner the better, ofcourse - then the newbie is likely to cut to the chase :
In trading, there is one simple thing you must do to be a winner.
You must be on the right side of the market. In other words, you must position yourself so that the odds of the market going in your direction are better than the odds of the market moving against you.
So let your 'indicator(s)' assist to indicate if the odds are in your favor.
Don't try to pick 'winning stocks'( this is where tips come in , also emotionally one gets attached to the potential winner , and the need to be right...all lead to disappointment) |
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amitsaraf21
White Belt
Joined: 20 Feb 2009
Posts: 76
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| Post: #11 Posted: Mon May 21, 2012 12:45 pm Post subject: Re: Ten Questions Newbie Ask............ |
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Boss very well said.
Time has answers to almost all these questions.
with time i mean time in the markets.
| Padkondu wrote: | | amitsaraf21 wrote: | 1. What is the best indicator for intraday.
2. What is better swing trading or Intraday.
3. What is better index futures or individual stock futures.
4. What is better options or futures.
5. What is the best time frame to trade.
6. What is the best system for range bound/sideways markets.
7. How much money do i need to start trading.
8. Which is the best broker:?:
9. What is your view on this x or y or z
and
10. I made x points, how many points did u make.
There are so many more questions that a newbie would ask, and for me i don't have any answer to any of them.
There cannot be a right answer to a wrong question. |
A newbie will always have questions and by the time he knows if it is a right question or wrong question he is no more a newbie. i do not know about others but at least half of the questions are very familiar to me. unfortunately, the answers are not easy. one has to know through ones own experience. how ever I would like to answer the question no 5.
this was my biggest problem when i was as a beginner few years back. it took me more than one year to understand the importance of time frame and the importance of sticking to a particular time frame.
choosing the time frame is as important as choosing a strategy. It depends on personality, strategy in application, profit objective. etc.
the best intra day time frames are 15min, 10min, 5min and 2 min if one is using a single timeframe strategy/method.
the 2 min timeframe is for scalper, which i never did.
if one is using multiple timframe strategy (15min and 5 min) or (30min and 10min) combinations are in usage. (i was good with 15min,5 min combination, of course, with a birds eye view on daily charts and important levels)
for swing trading - daily,60min,30min and 15min are used. for multiple time frame strategies daily/60min, 60min/20min, 30min/10min are used.
i personally feel that daily/60min and 30min/10min timeframes are very good. i used 60min/20min time frame for quite some time and i always get a buy signal just below resistance and sell signal just above a support. one needs to have larger stops for using this strategy. the other two are reasonably good.
how ever one has to try out the time frames that are suitable to their personality, profit objectives.
higher the time-frame, less whipsaws. this is the general word of the market. i also say better the exit strategy, better the success ratio. the big problem traders face is that, the stock will hit the stop and move in the direction of trade. this calls for adjusting the stop.
all these are gained better by experience, but keep trading quantity low till gain experience.
i swing trade using 60min/20min timeframe, with due respects to daily and weekly charts.
regards
Padkondu |
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amitsaraf21
White Belt
Joined: 20 Feb 2009
Posts: 76
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| Post: #12 Posted: Mon May 21, 2012 12:47 pm Post subject: Re: Ten Questions Newbie Ask............ |
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Hasten boss, great addition
thanks
| hasten wrote: | | amitsaraf21 wrote: |
2. What is better swing trading or Intraday.
|
Day traders buy and sell stocks throughout the day in the hope that the price of the stocks will fluctuate in value during the day, allowing them to earn quick profits. A day trader will hold a stock anywhere from a few seconds to a few hours, but will always sell all of those stocks before the close of each day. The day trader will therefore not own any positions at the close of any day, and there is no overnight risk.
Swing traders will normally have a slightly longer time horizon than day traders for holding a position in a stock.Swing trading is a style in which one trades intermediate trend in the market . This trend normally lasts from 3 days to 3 weeks......Swing trading requires keeping overnight positions and these are subject to gap ups/downs, adverse movements in world markets, bad news affecting the world markets etc. Bur the rewards are also good if one remains in the trend till the trend shows reversal and then reverse and take a ride in the opposite direction.
Difference:- Principal Difference Between Day Trading & Swing Trading is that swing traders will normally have a slightly longer time frame than day traders for holding a position in a stock Or Its futures. Swing traders also attempt to predict short term fluctuation in stocks price. However, swing traders are willing to hold stocks for more than a day, If necessary,
Note :- Swing trading has the capability of providing higher returns than day trading. However, Unlike day traders who square off their positions on the same day before the market closes.There are some significant risks in carrying positions overnight. For example news events and earnings warnings announced after the closing bell can result in large, unexpected and possibly adverse changes to a stock's price. Similarly good news can give significant rise the next day.
Regards, hasten
There are three things I always forget. Names, faces and... the third I can't remember. |
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STEPUP
White Belt
Joined: 17 Mar 2012
Posts: 95
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| Post: #13 Posted: Mon May 21, 2012 12:52 pm Post subject: |
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If being on the right side of the market makes profit than its really hard to understand which is the wrong side of the market and can anyone make me understand when any one has taken a risk , how it can be controlled, its all management talk, LIFE is different , If any one hard read "THEORY OF RELATIVITY" or understood a bit knows how to make money out of Equity Market,The fact is everyone is NEWBIE,EVERYONE but the Question here is, what does an individual means about LEARNING, AS A PROCESS OR PROGRESS.
THERE IS NO RIGHT OR WRONG IN MARKET,EVERY PRICE IN EQUITY MARKET AT ANY OCCASION IS TRUE,They difference stands what do you mean by Right or Wrong side of market.
What would have been the WORTH of Equity market if everyone have been making money than its better to have printing press, Prove the Worth, EVERY THING HAS A WORTH,ARE YOU WORTH IT? |
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amitsaraf21
White Belt
Joined: 20 Feb 2009
Posts: 76
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| Post: #14 Posted: Mon May 21, 2012 1:21 pm Post subject: thanks |
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| STEPUP wrote: | If being on the right side of the market makes profit than its really hard to understand which is the wrong side of the market and can anyone make me understand when any one has taken a risk , how it can be controlled, its all management talk, LIFE is different , If any one hard read "THEORY OF RELATIVITY" or understood a bit knows how to make money out of Equity Market,The fact is everyone is NEWBIE,EVERYONE but the Question here is, what does an individual means about LEARNING, AS A PROCESS OR PROGRESS.
THERE IS NO RIGHT OR WRONG IN MARKET,EVERY PRICE IN EQUITY MARKET AT ANY OCCASION IS TRUE,They difference stands what do you mean by Right or Wrong side of market.
What would have been the WORTH of Equity market if everyone have been making money than its better to have printing press, Prove the Worth, EVERY THING HAS A WORTH,ARE YOU WORTH IT? |
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ajayhkaul
Yellow Belt
Joined: 18 Jun 2009
Posts: 866
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| Post: #15 Posted: Mon May 21, 2012 3:19 pm Post subject: |
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| STEPUP wrote: | If being on the right side of the market makes profit than its really hard to understand which is the wrong side of the market and can anyone make me understand when any one has taken a risk , how it can be controlled, its all management talk, LIFE is different , If any one hard read "THEORY OF RELATIVITY" or understood a bit knows how to make money out of Equity Market,The fact is everyone is NEWBIE,EVERYONE but the Question here is, what does an individual means about LEARNING, AS A PROCESS OR PROGRESS.
THERE IS NO RIGHT OR WRONG IN MARKET,EVERY PRICE IN EQUITY MARKET AT ANY OCCASION IS TRUE,They difference stands what do you mean by Right or Wrong side of market.
What would have been the WORTH of Equity market if everyone have been making money than its better to have printing press, Prove the Worth, EVERY THING HAS A WORTH,ARE YOU WORTH IT? |
If you are 'long' and market is trending up , then you are on the right side of the market. But if market is trending down , then(since you are long) you are on the wrong side of the market. It is also possible that you were initially on the right side and then a catalyst event turned the market against you.
This applies to 'time frames' that you choose
You may have a favorite trending indicator(s). Understand that indicator well. Icharts has everything you need and more.
And be ready to run whenever the market goes against you (stop loss , based on your risk appetite)
a winner will show up and keep you in it . You don't hold on to any losers
That way even if you have 70% losers(with minimum budgeted losses) and 30% winners that you ride .....you will end up in the green overall.
Losses will be there , minimize them.Be ruthless with losers.
Winners ? see how long your system lets you ride them. Have No regrets if you dont ride all the winners all the way ..c'est la vie (thats life) |
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